I had one independent who didn't pay on time and I reminded several times with no reply.
I then found a couple of their other affiliates and asked re: their status on payments. Come to find out this independent never received my emails and immediately cut a check. They had gotten behind during the holidays due to things being so busy and were trying hard to catch up.
I've never had a problem with bounced checks though. From a legal standpoint (and depending on your location, and the location of the merchant), you should present the check for payment a 2nd time (in the US that's usually the maximum allowed times to present). If it bounces again, you may be able to file a criminal complaint, since in most states this is fraud. That should get their attention.
If however you wish to contact them first, which isn't a bad idea , you should tell them you need a bank check or money order for the payment, plus the fees you were charged by your bank. Upon your receipt of the replacement payment in acceptable form (you could even try Paypal payment option), you should then mail them back the returned check.
You can tell them you would hate to pursue legal avenues to collect the money, but it is an alternative you may have to pursue if they don't pay.
You can't threaten, but you can advise that you will have no choice but to pursue the legal remedies available to you.
Whichever way you decide to go, I would remove the links to their products ASAP. Why send more visitors for which you don't get paid?
If the merchant or yourself are outside of the US it makes things much more difficult and it may be simplier to chalk it up to experience, then blast the merchant in complaint areas of affiliate forums. Of course, you may feel this is your best alternative anyway depending on the actual circumstances.
It wouldn't be libel so long as you have proof of what transpired and you don't embellish Kinda like Joe Friday from Dragnet ... "Just the facts, Ma'am."
As a side note, this is not legal advice and should not be construed as such.
Debs _________________ Learn how to turn keyphrases into quality, well-targeted articles your visitors and SE's will love with Gary Antosh's new ebook "Web Content Made Easy!"
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, you should tell them you need a bank check or money order for the payment, plus the fees you were charged by your bank. Upon your receipt of the replacement payment in acceptable form (you could even try Paypal payment option), you should then mail them back the returned check.